Interesting podcast with Beth Kindig and her partner Knox Ridley. Beth focuses on products and fundamentals while Knox is a technical analyst.
I won’t try to summarize, but here are some of the takeaways that struck me.
Beth said she is confident that we are going to see some of the SaaS darlings fall as the longer term effects of the pandemic really start impacting the economy. She didn’t specifically identify which ones but she said try and take away the virus and see which companies are still strong. ZM is one of them. She also likes DDOG. They didn’t go into very much, but they are also long TWLO.
One comment that got my attention was the “enterprise is where the money is”. So it’s great to see the viral growth of ZM, but the adoption by enterprise is indicative of its long term potential.
She is cautious about FSLY. She doesn’t see it as anything beyond a CDN and therefore it’s revenue will tend to be very price competitive. She does not see it as an edge computing play. She asserts that the “origin servers” (new term for me) will address edge computing requirements. AWS and Azure will address this requirement by moving the servers closer to the data sources.
One other thing, if you’re interested, listen to the podcast as there are some very significant errors in the transcript.